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IMPORTANT NEW INFORMATION CONCERNING THE USE OF FURLOUGH DAYS

This report was originally posted to the State Rank and File Director's web page on May 5, 2009

Happy Cinco de Mayo!

This update will deal with furloughs, primarily. I am recommending that each of us start using furlough time in lieu of vacation/annual leave, holidays, sick leave, or any other credits for time off. I know we have been telling all of you to hold off on using furlough time until some of the details were worked out. While some things remain unsettled, basic guidelines have been established. While I still do not agree with the furlough program, so far, the courts have sided with the Governor. That being said, we may be stuck with them, though at this time we are still pursuing legal action.

So how do these furloughs work for us, besides not very well? One furlough day is equal to one fifth of a week. This comes from dividing the eight hours of furlough time into the forty hour week most State employees’ work. We do not work a forty hour week. Our time is converted depending on work week, so the 72 hours most of us are on duty converts to 15 hours of furlough time per furlough day (8 hours). For the 84s, the time converts to 17 hours per furlough day (8 hours). Both of these are derived by dividing the work week by 5 to determine what 1/5 of a week equals. With regard to sec. 8.4 employees who already work a 40 hour week, eight hours equals eight hours, or one fifth of forty hours.

Since furlough time has no cash value, and it cannot be cashed out on retirement, I think it prudent to begin using furlough time in lieu of other leave credits. Since furlough time is based on hours, the easiest way of using them is in place of vacation or annual leave. Use of furlough time in place of holidays, PLP days, etc. is accomplished the same way vacation/annual leave is done now with use of conversion charts that take into account the values quoted above.

Use of furlough time in place of sick leave is an individual choice, but the rules stated above would remain in effect. If an illness lasts longer than one day, an employee may decide to use furlough time in place of sick leave for the second, third, and additional days. Since the first day of sick leave only costs eight hours, the use of furlough time on subsequent days could save the employee banked sick leave. Each employee will have to analyze each of these situations to see what works best for them to reduce the impact of this negative situation.

At the bottom of this document are the guidelines put out to the field by management. Please use them for reference and planning purposes. The documents are entitled “Furlough Facts #3”.

Click link below to read further

 

Budget Battle Includes Fight to Preserve Retirement and Health Care Benefits

Over the past several years we have watched a steady, unwarranted attack on our retirement and health care benefits. What once was considered a taboo subject is now being openly discussed here in Sacramento. If you watch the news or read the paper you have noticed the Mantra of “unsustainable benefits” and “overly generous pensions” has become a drum beat of various interests groups targeting labor unions. These very same groups are intensifying the pressure and have taking advantage of the budget stalemate that is stagnating Sacramento.

These interest groups are proposing a huge rewrite of statutes that directly affect public sector workers like firefighters. They are putting these proposals forward under the guise of creating efficient government or saving funds for the welfare of Californians. What is so dishonest about this current attack is that any of these proposed changes to retirement and health care benefits would do nothing to solve the current budget crisis. It is all a ruse designed to take advantage of the situation and play on the public’s fears. We face a real danger of losing hard fought benefits that took decades to achieve. Sacrifices were made to obtain these benefits through trades off in collective bargaining. And now, with the stroke of a pen some or all could disappear.

This fight has been ongoing and will remain in the forefront. There is nothing more important on our plate than preserving our well deserved pension and health care benefits. We know we have public opinion on our side. The citizens of California, when told the truth about pensions and benefits, understand the lifetime of sacrifice you make risking your life for others. Most citizens realize and agree you should be allowed a fair retirement and decent health care.

Let me make this very clear, we are in this battle and plan to see it through to the end. We do not intend on losing and we are maintaining a constant vigil with a can-do team. If and when we need more help from you, the proud members of this Union, be it financial or hands-on, we will without hesitation put out the word. As you always have, we know you will respond; it’s in your nature. We have our entire team in Sacramento focused on the issue, we are walking the halls of Capitol and talking to policy makers, carrying forth a simple message; do not kill collective bargaining, do not make wholesale changes to our benefits without first coming to the table and discussing such changes with us.

Some of the proposed changes to our pension and health plan benefits are shown below with a short description of each.

June/July 2009 Budget Negotiations/Proposed Changes

Each of the proposals to change the current pension and health plan premium benefits will affect certain groups of our members in different ways and at different times. This list is a synopsis of the proposals we have heard about and the direct effect on our membership, either by individual or group. Obviously, there could be more proposals made that are not included herein and will be addressed separately when they arise.

3 Year Average for Retirement Calculation, from the Current One Year,

for New Hires on or after July 1, 2009

Employee would be required to select the continuous, 36 month period to be averaged to calculate the monthly retirement pay. Currently, employee chooses the continuous 12 month period to average for the final pay calculation.

Since the 3 year averaging would not be used until new hires start retiring, the direct savings to the state would be minimal. The new methodology would be used by the CalPERS actuaries to determine retirement contribution rates using tables that stretch out at least 30 years. This item does very little to help with the current budget deficit.

Retirement Contributions to Start with the First Dollar Earned Instead of After the First $238

Currently, your contribution rate to your retirement fund is calculated starting after the first $238.00. For someone making $4,000 per month, the retirement contribution of 8% would apply to all $4,000 equaling $320.00 per month. Currently, the calculation applies after subtracting the first $238.00 or $4,000 minus $238.00 times .08 equaling $301.00. The difference is $19.00 per month or $228.00 per year, 5.7%.

Savings to the state would be immediate and would be a direct loss to our members upon application.

Statutory Changes to Adjust Contribution Rates Shall Supersede

All MOU Provisions Should There be Any Conflicts.

(Takes away any language in any MOU that would change contribution rates for retirement)

This provision takes away any authority to negotiate contribution rates at the bargaining table. This removes the ability of the bargaining team to negotiate contribution rates. Instead, contribution rates would need to be included in a statutory change as part of a legislative bill.

All new hire firefighters in Bargaining Unit 8, after July 1, 2009, would be placed in the POFF formula of 21363.1 of the Government Code, 3% at 55. While these “new hires” would be eligible to retire at age 50, the full enhancement would not be realized until age 55.

Savings to the state would be calculated by the actuaries when setting employer contribution rates. The immediate impact would be minimal as any savings would be part of the actuarial calculations using tables over a 30 year period.

In addition, most employees would be required to stay on the job until at least age 55 to obtain the maximum 3% at 55 benefit. Staying on the job longer would have an offsetting negative effect on the state because top-step employees would stay longer at the higher salary and differential levels thus reducing any anticipated savings to the state.

While there may be some minimal savings to the employer over the long term due to a small reduction in employer contribution rates for retirement, there will also be an offset to any savings due to top-step employees at the highest differential levels staying on the job longer to reach their maximum benefit.

Public Employee Medical Health Care Act (PEMHCA). Proposed Language Allows the State to Administer PEMHCA along with CalPERS.

The direct intent here is to provide statutory language providing another authorized entity of the state to administer PEMHCA. The current authority rests with CalPERS. This language would allow an entity of the state, such as DPA, to administer the health plans including the setting of rates and plan design.

States Duties and Rights of Board . . . . . Government Code Section 22850.

This section would allow the state to administer PEMHCA for all members of CalPERS including local, public agency members. This change could completely gut the current Health Benefits Branch of CalPERS and shift that responsibility to the state.

In earlier writings, the state indicated it may contract out these responsibilities. However, nothing in the current proposal suggests that is the plan.

The proposal appears to allow plan designs for state employees to vary by region. Currently, plan designs for state employees must be the same statewide. This approach could further reduce the value of health plans available to members in the remote areas of the state. By allowing different plan designs, the costs associated with different plan designs could vary widely and the type of health care available to some would not be available to others based on geographic assignments.

Savings to the state are unknown. Previously, the state suggested a target of $132.5 Million by offering an alternative health plan and by direct administration. Any savings would likely be routed into the state general fund. Currently, CalPERS has used savings to offset future rate and/or co-pay increases.

Employees Hired on or after July 1, 2009 Would be Subject to the State Employer Contribution Rate for Post Retirement Health Plan Rates for Active Employees. Currently, the Rates are 100/90 for Retirees and 85/80 for Active BU 8 Employees.

Savings to the state would not be appreciable until those that are hired on or after July 1, 2009, begin to retire, approximately 20 to 30 years based on the current method of funding post retirement health/dental plan premiums. The current system is pay-as-you-go from the general fund. The state currently uses some funds paid to the state from the federal government for participating in the Medicare Part D Prescription Drug Program to offset the premium costs.

Savings to the state could start sooner if the state agreed to pre-fund certain post retirement health plan benefits such as premiums for health and dental plans. Pre-funding would provide investment returns to offset direct contribution rates much like the current pension system investments offset contribution rates. As a point of reference, $.75 of every dollar paid to current retirees comes from invested funds, not the principle investment.

State Employees Hired on or After July 1, 2009, Would Become Eligible for Full Employee Retiree Health Plan Contributions After 25 Years of Employment.

Currently employees are vested for post retirement health plan contribution rates starting at 10 years (50% of contribution rate) going up 5% per year up to 20 years to be completely vested for the 100/90 contribution formula.

This proposal would require an employee to have 25 years of employment before being fully vested. It is not clear if there is a point that vesting starts at a lower level. Also not clear is if the employment must be continuous or cumulative. Currently, the cumulative total is used to determine the vesting level of employees.

If the full vesting requires 25 consecutive years, this could negatively impact members that may have worked with another employer and then joined state employment at a later date or the employee left state service and at a later date, returned to state service. For those employees starting a career with Cal Fire at a later stage in their life, becoming fully vested may take a longer period of time than they are willing to work. This can have a sobering effect on certain employees causing some to leave state service looking for a better benefit package.

Brothers and Sisters we are facing real threats to parts of our benefit packages that took decades to secure and came in lieu of many salary enhancements. We are fully committed to fighting these major hits to our members; our entire team is engaged and all our resources will be deployed. We may be calling on individual members to step up and fight with us in the coming weeks.

We have been down difficult roads before but nothing like this one, the outcome is far from certain and we are working day and night. We are a grassroots organization if you have ideas or questions do not hesitate to contact us.

Stay proud, Stay strong and Stay union

Bob Wolf, President
       
    IAFF RSS News Feed
7/1/2009
Deadline for Fire Station Construction Grant Applications Is July 10

July 1, 2009 -- The Department of Homeland Security (DHS) Assistance to Firefighters Fire Station Construction grant application period will end at 5:00 p.m. Eastern Time on July 10, 2009. Fire Station Construction grants will provide funding directly to fire departments on a competitive basis to build new or modify existing fire stations in order to enhance response capabilities and better protect communities from fire and fire-related hazards. The Fire Station Construction grants were derived from the American Recovery and Reinvestment Act of 2009. Congress appropriated a total of $210 million for Fiscal Year 2009 for this program.

7/1/2009
House Approves Doubling SAFER Funding

July 1, 2009 -- The U.S. House of Representatives has approved a Homeland Security Appropriation bill that doubles funding for the Staffing for Adequate Fire and Emergency Response (SAFER) grant program. The bill calls for spending $420 million on the program, which provides grants to help communities hire fire fighters. The bill also provides funding for a variety of other fire service programs, including $390 million for the Assistance Firefighters Grant (AFG) program, commonly known as FIRE Act grants.
6/29/2009
New Haven Fire Fighters Prevail

June 29, 2009 -- Eighteen New Haven, Connecticut, fire fighters who filed suit in federal court against the city of New Haven after the city threw out the results of promotional exams prevailed over the City today when the United States Supreme Court, by a 5-4 vote, reversed a lower court’s decision. In the case, Ricci v. DeStefano, the Supreme Court ruled that the City of New Haven could not throw out the results of a promotional exam simply because it feared the outcome of a test could potentially leave it vulnerable to lawsuits from minority fire fighters who did not qualify for promotion as a result of a test, in violation of Title VII of the Civil Rights Act of 1964.
6/24/2009
President Obama Approves New SAFER Rules

June 24, 2009 -- President Barack Obama has approved new rules that govern how fire departments can use funding from the Staffing for Adequate Fire and Emergency Response (SAFER) grant program, an important change during the economic crisis that has caused widespread layoffs of fire fighters throughout the country. The new guidelines will apply to the $210 million that Congress approved for SAFER for Fiscal Year 2009. The IAFF wrote and lobbied for the new provision that was included in HR 2346, the Supplemental Appropriation bill – which was initiated and supported by President Obama – to allow the use of SAFER grant funding to rehire laid-off fire fighters and prevent fire department staffing reductions that occurred as a result of the current financial crisis.
6/23/2009
IAFF Mourns the Loss of Ed McMahon

June 23, 2009 -- International Association of Fire Fighters General President and Vice President of the Muscular Dystrophy Association Harold Schaitberger issued a statement on the death of Ed McMahon. MDA has also released a statement.
6/22/2009
Governor Nixon Grants Death Benefits to Families of First Responders

June 22, 2009 -- Standing inside a Kansas City fire station, Missouri Governor Jay Nixon signed a bill to benefit the families of Missouri emergency personnel killed in the line of duty. House Bill 580, which establishes the Line of Duty Compensation Act, allows a claim to be filed with the Division of Workers' Compensation on behalf of a law enforcement officer, fire fighter, emergency medical technician, air ambulance pilot or air ambulance registered nurse for a benefit of $25,000.
6/22/2009
IAFF Members Respond to Deadly Train Collision

June 22, 2009 -- More than 200 fire fighters from the District of Columbia, Maryland and Virginia responded to a deadly Metro train collision that killed at least six people and injuring scores of others, including two fire fighters. One Metro transit train smashed into the rear of another during the Monday rush hour. Cars of both trains were ripped open and smashed together, and a District of Columbia fire spokesperson said crews had to cut some people out of what he described as a "mass casualty event." Rescue workers treated 70 people at the scene. Officials have no explanation for the accident. The National Transportation Safety Board took charge of the investigation and sent a team to the site of the worst accident in the Metro system's 33-year history.

6/19/2009
Watch Schaitberger Live From Denver Firehouse

June 19, 2009 -- IAFF General President Harold Schaitberger and Federal Emergency Management Agency (FEMA) Administrator Craig Fugate will conduct an online roundtable on emergency preparedness on Monday, June 22 at 11:00 a.m. Mountain Time.
6/19/2009
Senate Panel Matches SAFER, FIRE Funding Levels in House

June 19, 2009 -- A U.S. Senate panel has provided $420 million for the Staffing for Adequate Fire and Emergency Response (SAFER) grant program and $380 million for Assistance to Firefighters (FIRE) grants in 2010. The funding was approved by the Senate Appropriations Committee in its draft Homeland Security Appropriations Act for Fiscal Year 2010 on a unanimous vote.
6/19/2009
USA Today: Fire Fighters See Cuts Eroding Safety

June 19, 2009 -- Thousands of fire fighters across the country face possible layoffs this year, prompting concern that deep local government budget cuts will delay emergency response times. Since late last year, cities have been forced to shutter local fire stations, reduce services at others and cut the number of fire fighters dispatched on emergency calls. Fire fighting positions have been eliminated or are on the chopping block in cities such as Orlando, Atlanta, Flint, Michigan, and Columbus, Ohio. "Whatever you do that results in increasing response times (to fires), you are absolutely playing Russian roulette," says Harold Schaitberger.

6/18/2009
New Rules Allow SAFER Grants to Prevent Layoffs, Restore Cuts

June 18, 2009 -- Congress has voted to allow the use of federal funding to rehire laid off fire fighters and prevent fire department staffing reductions. The new rules for Staffing for Adequate Fire and Emergency Response (SAFER) grants make funding available to help keep IAFF members safe and on the job and bring back those who have been laid off as a result of the current financial crisis. The bill is now on its way to the White House.
6/18/2009
Two Years Later, Charleston Tragedy Still Fresh for Fire Fighters

June 18, 2009 -- Charleston, SC Local 61 and the city of Charleston, South Carolina, are marking the two-year anniversary of the Sofa Super Store fire, the inferno that killed nine fire fighters who were trapped inside the building. The nine deaths made it the deadliest fire in the fire service since September 11, 2001. Although the Sofa Super Store occurred two years ago, the tragedy remains fresh in the memories of Charleston fire fighters, Charleston Local 61 President Bill Haigler says. “Everybody here still does something everyday to remember the guys who died,” he says. “Moving forward is great. That’s important. But we need to remember these guys.”
6/15/2009
Providence Fire Fighters Picket U.S. Conference of Mayors

June 15, 2009 -- Picket lines in Providence, Rhode Island began June 12 at the U.S. Conference of Mayors Annual Meeting, culminating a week in which Vice President Joe Biden and more than 25 members of the Obama administration canceled plans to attend the U.S. Conference of Mayors’ event in Providence rather than cross a picket line protesting Mayor David Cicilline’s treatment of Providence Local 799 fire fighters. The Conference, which began June 12, runs through June 16.
6/11/2009
WHO Raises H1N1 Flu Threat Level to Highest Level

June 11, 2009 -- he World Health Organization (WHO)has declared the global outbreak of the novel H1N1 influenza virus to be in Phase 6 -- a full-scale pandemic. The announcement warns the World Health Organization's 194 member nations to expect the arrival of the new flu strain, which is likely to infect up to one-third of the population in the first wave and return in later waves over the next several years. Simultaneously, the World Health Organization is advising the world's makers of influenza vaccine to quickly prepare commercial-scale pandemic vaccine of this H1N1 virus.
6/11/2009
New Safety Video Stresses Need for Emergency Preparedness

June 11, 2009 -- The U.S. Chemical Safety Board (CSB) has released a new safety video showing the need for emergency response agencies, companies and communities to work closely together to prepare for the kinds of tragic chemical accidents that CSB has investigated over the past 10 years.
6/10/2009
Schwarzenegger Reverses Proposed Cuts

June 10, 2009 -- Governor Arnold Schwarzenegger has reversed his position on a proposal to end health insurance coverage for the surviving families of police officers and fire fighters who die in the line of duty. Schwarzenegger called the $1 million proposal a "terrible screw-up." The proposal was part of $100 million in savings the administration said could be harvested from the suspension of some state laws, known as mandates, that put requirements on local governments and obligate the state to pay for them.

6/10/2009
Fire Station Construction Grant Application Period Begins June 11

June 10, 2009 -- The Department of Homeland Security (DHS) Assistance to Firefighters Fire Station Construction grant application period will begin at 9:00 a.m. Eastern Time on June 11, 2009. The deadline for submitting these grants is 5:00 p.m. Eastern Time on July 10, 2009. Fire Station Construction grants will provide funding directly to fire departments on a competitive basis to build new or modify existing fire stations in order to enhance response capabilities and better protect communities from fire and fire-related hazards. The Fire Station Construction grants were derived from the American Recovery and Reinvestment Act of 2009. Congress appropriated a total of $210 million for Fiscal Year 2009 for this program.
6/9/2009
Rockingham Fire Chief Continues Vendetta Against Fire Fighters

June 9, 2009 -- Rockingham Fire Chief Charles Gardner has fired Rockingham, NC Local 4702 President Robbie Barber, the second union member fired since Rockingham fire fighters formed Local 4702. Attorneys representing Rockingham fire fighters filed the Fair Labor Standards Act lawsuit seeking unpaid wages in the federal district court for the Middle District of North Carolina on March 13. Since then, Chief Gardner has engaged in a pattern of retaliation and abuse against members of Rockingham Local 4702.

6/9/2009
House Panel Approves Obama SAFER Funding Proposal

June 9, 2009 -- The U.S. House of Representatives has taken the first step toward increasing funding for Staffing for Adequate Fire and Emergency Response (SAFER) grants in 2010 by providing $420 million for the program in a draft appropriations bill. The bill, the Homeland Security Appropriations Act for Fiscal Year 2010, was approved by the House Appropriations Subcommittee on Homeland Security.
6/8/2009
IAFF EMS Conference Kicks Off in Miami

June 8, 2009 – IAFF members from the United States and Canada are in Miami, Florida, this week for the 10th Biennial Dominick F. Barbera EMS Conference. This year’s theme, “Leading Through a Crisis: EMS and the Current Economy,” addresses the ongoing recession and its effect on IAFF members and fire-based EMS.


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